OREANDA-NEWS. On August 31, 2007 in accordance with Articles 28 and 33 of the Federal Law "On Protection of Competition" the Federal Antimonopoly Service (FAS Russia) granted the petition of Stephens Capital Ventures S.A. on purchasing 82% voting shares of "Silovie Mashiny [Power Machines] - ZTL, LMZ, Elektrosila, Energomashexport" OJSC and issued determination to carry out actions towards competition protection, reported the press-centre of FAS Russia.

Based on its analysis of competitive environment on the market of turbines, turbine-generators, hydro-generators and electrical equipment, FAS Russia established the biggest manufacturers in the Russian Federation: "Silovie Mashiny - ZTL, LMZ, Elektrosila, Energomashexport" OJSC, that controls around 37% of the market; "Energy Machine-building Alliance " ("EMAlliance") with market share - around 15%; and the "Energomashcorporatsia" Group: market share around 10%. "Izhorskie Plants" OJSC (part of the "United Machine-Building Plants" Holding) has market share of around 5%, "Tyazhmash" OJSC- around 5%, "Kaluzhsky Turbine Plant" OJSC - around 5%.

Upon executing the petitioned transaction, Stephens Capital Ventures S.A. will control 37% of the goods market in the Russian Federation and upon certain conditions can gain dominant position on the Goods market.

Therefore, FAS Russia made a decision to grant the petition of Stephens Capital Ventures S.A. and at the same time issue a determination on carrying out actions toward competition protection until Stephens Capital Ventures S.A. owns 50% + 1 share of "Silovie Mashiny - ZTL, LMZ, Elektrosila, Energomashexport" OJSC, particularly:

- Do not undertake any actions leading to product abandonment or unjustified reduction of the output, in particular, as a result of production reorganization at "Silovie Mashiny - ZTL, LMZ, Elektrosila, Energomashexport" OJSC, or reorganization, liquidation, bankruptcy, or other termination of business activities of "Silovie Mashiny - ZTL, LMZ, Elektrosila, Energomashexport" OJSC without prior agreement with the Federal Antimonopoly Authority, provided the above goods remains of effective demand with end-customers, who exercise their activities in the Russian Federation;

- Do not allow "Silovie Mashiny - ZTL, LMZ, Elektrosila, Energomashexport" OJSC to refuse supplying the goods to Russian customers;

- Every six months during the five-year period upon issuing the determination, submit to the Federal Antimonopoly Service information on the main economic indicators, the volume of production and supply on domestic and foreign markets, covering the whole range of products manufactured by "Silovie Mashiny - ZTL, LMZ, Elektrosila, Energomashexport" OJSC.

Failure to fulfill the lawful determination of the antimonopoly authority within the designated period is liable with administrative charges under Part 2.3 Article 19.5 of the Code of Administrative Violations of the Russian Federation, and under Part 5 Article 34 of the Law on Protection of Competition forms the grounds for the Court to declare the transaction invalid in a lawsuit brought by the antimonopoly authority.